truckload demand

What the Red Sea conflict means for domestic transportation

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Chart of the Week: Freightos Baltic Daily Index – China to North American west and east coasts,...

https://www.freightwaves.com/news/what-the-red-sea-conflict-means-for-domestic-transportation

Intermodal’s gain is trucking’s loss

Chart of the Week: Outbound Domestic Loaded Rail Container Volume, Long Haul Outbound Tender Volume Index – USA SONAR: ORAILDOML.USA, LOTVI.USA

Long-haul truckload demand has moderated in October while domestic intermodal loaded container volumes have hit their highest levels since 2021. The implication is that shippers are converting truckloads to rail once again as service improves and rates fall. Rail’s resurgence could be another headwind to the beleaguered truckload market.  

It has been...

https://www.freightwaves.com/news/intermodals-gain-is-truckings-loss

A major cause of inflation may have peaked; that’s good news for consumers but bad news for trucking companies 

A truck rolls down the highway. (Photo: Jim Allen/FreightWaves)

Note these sobering statistics:

  • Truckload spot rates have fallen by nearly one-third since the start of the year, while truckload contract rates have risen. 
  • The spread between truckload spot and contract rates are near an all-time high. 
  • Spot rates always lead contract rates, usually by about three months. 
  • Shippers (firms that buy trucking capacity from trucking companies) buy most of their capacity in the truckload contract market, which means they have not seen a reduction in freight rates...

https://www.freightwaves.com/news/a-major-cause-of-inflation-may-have-peaked-thats-good-news-for-consumers-but-bad-news-for-trucking-companies

Inventory growth hits all-time high as warehouse prices soar in latest LMI

Chart of the Week: Logistics Managers’ Index – Inventory Levels, Inventory Costs, SONAR: LMI.INVL, LMI.INVC

The February Logistics Managers’ Index (LMI), which measures directional changes in transportation and warehousing activity, showed inventories growing at the fastest pace since the index was created in 2016 with a monthly value of 80.16. With companies finally making significant headway in restocking, orders may begin to slow, which may allow for supply chains to stabilize.  

Companies...

https://www.freightwaves.com/news/inventory-growth-hits-all-time-high-as-warehouse-prices-soar-in-latest-lmi

Lunar New Year impact will be minimal on imports

Chart of the Week:  Inbound Ocean Shipments Index, Inbound Ocean TEUs Index – USA  SONAR: IOSI.USA, IOTI.USA

According to the FreightWaves Inbound Ocean Shipments (IOSI) and TEUs (IOTI) indices, shippers are continuing to order goods from overseas at a record clip. According to the IOTI, which measures twenty-foot equivalent units being booked by estimated time of departure, shippers have ordered approximately 13% more TEUs than the same time last year and nearly 80% higher than January 2020...

https://www.freightwaves.com/news/lunar-new-year-impact-will-be-minimal-on-imports

Truckload rate increases have done little to improve carrier reliability

Chart of the Week: Outbound Tender Rejection Index, Van Contract initial reporting average base rate per mile – USA  SONAR: OTRI.USA, VCRPM1.USA

The national Outbound Tender Rejection Index (OTRI) that measures the percentage of electronic requests for truckload capacity from shippers that carriers rejected pushed back over 22% over the Christmas holiday period, despite the fact that contract rates have increased approximately 17% over last year. Simply put, these rejections cost a lot more than...

https://www.freightwaves.com/news/truckload-rate-increases-have-done-little-to-improve-carrier-reliability

Holiday truckload demand stronger than in 2020

Chart of the Week: Outbound Tender Volume Index – USA SONAR: OTVI.USA

After underperforming 2020 over Thanksgiving, the Outbound Tender Volume Index (OTVI) that measures the amount of electronic requests for truckload capacity shippers send to carriers has been averaging over 10% higher than the previous year since Dec. 22. This trend is a sign that shippers still have plenty of freight to move heading into the new year. 

The OTVI is an index with a base value of 10,000 based on the tender...

https://www.freightwaves.com/news/holiday-truckload-demand-stronger-than-in-2020

Increasing truckload length of haul suggests shippers have overordered

Chart of the Week: Outbound Average Length of Haul– USA SONAR: OALOHA.USA

Demand for longer-haul capacity has grown significantly over the past five months, driving the average length of haul for truckload tenders 10% higher. An unseasonal increase in this index is indicating shippers are seeing easing demand at the personal consumption level, are still trying to build inventories or both.  

The Outbound Average Length of Haul index (OALOHA) measures the average distance between the origin and...

https://www.freightwaves.com/news/increasing-truckload-length-of-haul-suggests-shippers-have-overordered

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